DeKalb School District 428 Board supports extension of Malta TIF district

DeKALB – The DeKalb School District 428 board recently approved a request by the village of Malta to extend a tax increment financing district by an additional 12 years.

A TIF district is a property tax tool used by units of government to spur economic development.

The majority of the board voted to back Malta’s TIF district extension and the related intergovernmental agreement.

Board member Christopher Boyes voted no on the intergovernmental agreement and yes on the TIF district extension. Board member Amanda Harnes voted no on both the intergovernmental agreement and the TIF district extension. Board member Andre Powell was absent.

Armir Doka, the district’s director of business and finance, said District 428 wants to put some limits on how TIF revenue can be used by the village.

“What we want to do is not allow this TIF money to incentivize private developers from infrastructure that they would normally do, but it’s OK if it is to the benefit of residents and current projects,” Doka said.

Board approval extends the life of the TIF district through 2037, according to school board documents. It also enables municipal leaders more time to put TIF revenue to use toward eligible redevelopment project costs.

Malta is eyeing the prospect of using TIF revenue to pay for wastewater main extension costs; looping water mains, tower and/or tank; and paving around the Harkness Lake path, Village Board meeting minutes show.

In addition, village officials are looking to use funds for economic development and a percentage toward a new well and tank that could be located outside the TIF district.

Harness said she’s concerned about resources being diverted from DeKalb schools.

“It’s money not going to the district,” Harness said.

DeKalb schools are not the only agency that could be affected by an extension of Malta’s TIF district. DeKalb County, Kishwaukee College, Malta Township, the Malta Township Library and the Malta Fire Protection District also could be affected, all of which are expected to weigh in on the village’s request.

Boyes, who lives in DeKalb, said he believes the district is standing in the way of promoting growth.

“I didn’t want to tie their hands by telling them what they could or could not use the TIF funds on,” Boyes said.

This story was updated at 6:05 p.m. March 7, 2024, to clarify two separate votes related to the Village of Malta’s tax increment financing district. Board member Christopher Boyes voted no on the intergovernmental agreement and yes on the TIF district extension. Board member Amanda Harnes voted no on both the intergovernmental agreement and the TIF district extension.